Bank Credit to NBFCs Falls to 4-Year Low at 6.7% in 2024: RBI
Bank lending to Non-Banking Financial Companies (NBFCs) has slowed significantly, hitting a four-year low of 6.7% in 2024, according to the latest data from the Reserve Bank of India (RBI). This decline is mainly due to higher risk weights imposed on such loans and tighter credit conditions, leading to reduced lending from banks to NBFCs. In contrast, previous years saw stronger credit growth to NBFCs, but the current financial climate has brought a shift in the sector’s lending patterns.
